Saturday, 18 April 2026

 

Candle Internal Structure: The Foundation of Price Action Trading

Understand how a single candle reveals market intention


Every candle represents a battle between buyers and sellers. Learning to read this internal structure is the first step to becoming a professional trader.

1. Candle Components

  • Open → Starting price
  • Close → Ending price
  • High → Highest point
  • Low → Lowest point

2. Body vs Wick

  • Body → Strength of move
  • Wick → Rejection / liquidity
Long wick indicates rejection and possible reversal zone.

3. Bullish vs Bearish Candles

  • Bullish → Close above open
  • Bearish → Close below open

4. Market Psychology Inside Candle

  • Strong body → Momentum
  • Small body → Indecision
  • Long wick → Trap or rejection
A candle is not just a shape. It shows who is winning: buyers or sellers.

Final Insight

Understanding candles is the first step. Mastering them leads to reading the market like a professional.

Shaktimatha Learning



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